The local currency market witnessed dull dollar demand amid sluggish activity last week.
The parity mostly traded stable but the pressure on the rupee remains.
On the interbank market, the rupee showed a stable trend against the dollar, moving both ways amid sluggish activities. Trading in narrow ranges, the parity hovered between Rs105.44/45 on the buying counter and Rs105.45/46 on the selling counter.
The rupee turned negative against the dollar on Monday when the dollar managed to climb to Rs105.44 and Rs105.45 from the previous weekend level of Rs105.40 and Rs105.42.
Owing to flat demand for dollar from importers on Tuesday, the rupee traded against the dollar at Rs105.44 and Rs105.46.
On Wednesday, the rupee traded flat on the selling counter with the dollar changing hands at Rs105.45 and Rs105.46. Due to lack of triggers and dull demand in the market, the parity remain unmoved on Thursday.
The parity mostly traded stable but the pressure on the rupee remains
The week closed flat as the rupee continued to remain unchanged against the dollar amid balanced demand and supply position of the dollars on Friday.
Hovering between the high of Rs105.45/46 and low of Rs105.35/37, amid variations, the rupee has so far depreciated against the dollar by 0.1 per cent in the first three weeks of November.
In the open market, the rupee mostly traded flat against the dollar amid dull trading activities last week.
The parity sustained its weekend firmness due to lesser dollar demand in all the four trading sessions. Commencing the week at Rs107.20 and Rs107.40 against the dollar, the rupee traded unchanged in all the five trading sessions, closing the week flat at Rs107.20 and Rs107.40.
However, the rupee has managed to appreciate by 0.3 per cent in the past three weeks of November.
Against euro, the rupee assumed downtrend last week.
On Monday the rupee slipped to at Rs124.75 and Rs126.00 against the prior weekend level of Rs124.60 and Rs125.85.
The rupee downslide against the euro persisted on Tuesday with the euro seen changing hands at Rs125.50 and Rs126.80.
Continuing its downslide on Wednesday, the rupee suffered Rs1.25 loss on the buying counter and another Rs1.20 loss on the selling counter. This was the biggest single day loss in three weeks. Consequently, the euro surged to three-week highs at Rs126.75 and Rs128.00.
However, the rupee staged a rebound on Thursday, against the euro which was seen changing hands at Rs126.00 and Rs127.25.
On Friday, the rupee turned negative against the euro, closing the week at Rs126.30 and Rs127.55.
Published in Dawn, The Business and Finance Weekly, November 20th, 2017